Consigned goods are products not owned by the party in physical possession of them. The party holding the goods (the consignee) has typically been authorized by the owner of the goods (the consignor) to sell the goods. Once sold, the consignee retains a commission and forwards all remaining sale proceeds to the consignor. This arrangement is commonly used by manufacturers that do not have direct access to distribution channels, and which prefer to retain ownership of their goods in order to avoid bad debt losses. Retailers may also prefer this approach when they do not have sufficient working capital to buy goods from manufacturers.